Inside East African Community’s new spending plan

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The East African Community (EAC) has tabled a budget of $110.9 million for the 2026/27 financial year, the first to be prepared under a new financing formula that will require member states with larger economies to contribute more.

Chairperson of the EAC Council of Ministers Rebecca Kadaga presented the $110,863,576 spending plan to the East African Legislative Assembly (Eala). The proposed budget is slightly lower than the $113.9 million approved for 2025/26.

Ms Kadaga described the budget as a defining moment for the bloc as it marks the first year of implementation of the 7th EAC Development Strategy (2026/27–2030/31), themed: ‘Deepening Integration for Improved Livelihoods of EAC Citizens’.

Partner states are expected to contribute $67.8 million, equivalent to 62 percent of the budget, while development partners will provide $41.6 million, or 38 percent.“The budget estimates are being presented against a backdrop of global political tensions, rising inflation, climate change-related challenges and disruptions to international trade and financing,” Ms Kadaga, who is also Uganda’s Minister for East African Community Affairs, told lawmakers.“The budget also ushers in a new financing framework that will strengthen the sustainability and ownership of our integration agenda. In doing so, we are laying stronger foundations for generations to come,” she said.

The new formula, which takes effect on July 1, 2026, requires partner states to finance 50 percent of the budget through equal contributions, while the remaining 50 percent will be assessed according to each country’s economic size.“The budget for the financial year 2026/27 has been developed taking into consideration the full implementation of the 25th Summit of Heads of State directive on the new financing formula for the Community,” Ms Kadaga said.

She added that the spending plan also provides for recruitment to fill vacant positions across EAC organs and institutions and assumes timely disbursement of funds by partner states and development partners.

The EAC Secretariat received the largest allocation at $59.7 million, up from $55.2 million in 2025/26. The increase includes a two percent salary increment approved by the EAC Heads of State Summit in March.

Eala was allocated $19.1 million, down from $20.5 million last year, while the East African Court of Justice received $5 million, compared with $5.05 million previously.

Other allocations include the Lake Victoria Basin Commission ($7.01 million), the Inter-University Council for East Africa ($9.3 million), the Lake Victoria Fisheries Organisation ($2.2 million), the East African Science and Technology Commission ($2.6 million), and the East African Kiswahili Commission ($1.6 million).

The East African Health Research Commission was allocated $2.3 million, while the East African Community Competition Authority will receive $1.6 million.

Ms Kadaga said the budget was designed to support partner states’ efforts to deepen regional integration and economic resilience through improved security, domestic revenue mobilisation and digital transformation.

She also presented a supplementary budget for the current financial year to address funding gaps caused by delayed remittances from partner states.